December home loan snapshot: Fixed rates tumble amid avalanche of cuts
The latest Reserve Bank cut has, unsurprisingly, served as the catalyst for another round of widespread changes to home loan interest rates, with a majority of lenders having reduced rates over the past month.
According to the most recent Mozo Banking Roundup 1,996 home loan rate cuts were recorded in the Mozo database over the past month and more reductions are likely to follow in December as lenders yet to make post-RBA moves take action.
So what’s changed? As you would expect from this sizeable volume of cuts recorded, the home loan landscape has shifted - average rates have dropped across fixed and variable categories and a number of new, market-leading rates have emerged.
Lenders slash 4 and 5-year fixed rates
Following the emergency RBA cut in March, lenders largely focused on reducing fixed rate offers, and the same has happened again. As a result, all fixed rate home loan averages in the Mozo database have dropped since November 1, with the lowest average now 2.35% for 2-year fixed rates.
However, while the fixed cuts earlier in the year centered on shorter fixed terms, this month lenders have focused their attention on the 4 and 5-year fixed rates. Some of the notable changes in these categories include:
- Three of the four major banks - Commonwealth Bank, NAB and Westpac - are now offering 4-year fixed home loans with a headline rate below 2.00% for the first time
- Bank of Melbourne and St.George have become rate leaders in the 4-year fixed category by offering a rate of 1.94% (3.22% comparison rate*) with their respective Fixed Home Loans (Advantage Package)
- Newcastle Permanent now holds the rate-leading position in our database for a 5-year fixed rate offer after cutting over 100 basis points off the Premium Plus Package Fixed Rate Special
There were also some significant moves in the shorter fixed rate categories, with new rate leaders emerging in the 1, 2 and 3-year fixed categories. Here’s a snapshot of the lowest fixed rate^ offers in our database and the Mozo averages as of December 1, 2020:
Term | Rate leader | Fixed rate | Average |
1-year | Tic:Toc | 1.89% (2.18% comparison rate*) | 2.38% |
2-year | Tic:Toc | 1.89% (2.15% comparison rate*) | 2.35% |
3-year | QBANK | 1.89% (3.37% comparison rate*) | 2.38% |
4-year | Bank of Melbourne and St.George | 1.94% (3.22% comparison rate*) | 2.44% |
5-year | Newcastle Permanent | 1.99% (3.36% comparison rate*) | 2.68% |
ME and UBank among the few lenders to cut variable rates
Speaking of trends carried on from the RBA’s emergency cut in March, the majority of lenders haven’t passed on a 15 basis point rate cut to customers in response to last month's cut - although, this was largely anticipated.
While there was less movement on the variable home loan front, there were enough cuts recorded over the past month to push the average owner-occupier variable rate in the Mozo database 3 basis points lower to 3.31%.
And there were also a few notable variable rate changes:
- ME and UBank were among the largest banks to pass on a 15bp cut to existing variable rate customers following the November RBA cut
- Online lenders Athena, FreedomLend, Homestar and Reduce Home Loans also all cut variable rates by 15bp or more
- Neobank 86 400 launched a new variable rate home loan called the Neat Home Loan which features rates as low as 2.19% (2.20% comparison rate*) for owner occupiers with an LVR of <60%
Interested in seeing how your own rate compares to some of the lowest variable rates around? Here’s a snapshot the five lowest variable rates^ in the Mozo database as of December 1, 2020:
Variable rate | Lender | Loan |
1.99% (2.05% comparison rate*) | Reduce Home Loans | Super Saver Variable |
2.09% (2.09% comparison rate*) | Pacific Mortgage Group | Standard Variable |
2.14% (2.17% comparison rate*) | Homestar | Star Essentials |
2.17% (2.20% comparison rate*) | Well Home Loans | Well Balanced |
2.19% (2.19% comparison rate*) | FreedomLend | Variable Home Loan |
RELATED: Home loan rates starting with ‘1’ pile up after RBA cut
Looking for more home loans information? Check out the Mozo home loan hub for the latest news, guides and other resources, or if you’re keen to find a better rate why not start by checking out some of the competitive offers in the table below.
^Based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average home loan rates, check out our Australian home loan statistics.
Home loan comparisons on Mozo
Promoted
-
Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.16 % p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.16% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
- 5.90 % p.a.
- Initial monthly repayment
-
$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
- 5.99% p.a. variable
- Comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.39 % p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.39% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.23 % p.a.
- Initial monthly repayment
-
$3,059
No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.23% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
- 5.90 % p.a.
- Initial monthly repayment
-
$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- Interest rate
- 5.99% p.a. variable
- Comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Unloan Unloan Variable
-
Fixed Rate Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.09
%
p.a.
Fixed 3 years
- Comparison rate
- 6.15 % p.a.
- Initial monthly repayment
-
$3,027
Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.
- Interest rate
-
6.09% p.a.
fixed 3 years
- Comparison rate
- 6.15% p.a.
- Upfront fees
- $798
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free up to $10,000 pa
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ING Fixed Rate Loan
-
Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.16 % p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.16% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Mortgage Simplifier
- LVR<80%
- Owner Occupier
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.17 % p.a.
- Initial monthly repayment
-
$3,043
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.17% p.a.
- Upfront fees
- $299
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this ING Mortgage Simplifier
-
Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
- 6.39 % p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
- 6.14% p.a. variable
- Comparison rate
- 6.39% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Discount Great Rate Home Loan
- Owner Occupier
- Principal & Interest
- LVR<80%
- over $150k
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.21 % p.a.
- Initial monthly repayment
-
$3,059
An easy to use Home Loan with no establishment fee and no monthly or annual fees. Minimum deposit of 20% is required. Mozo Experts Choice Awards - Investor Home Loan Award 2024^.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.21% p.a.
- Upfront fees
- $180
- Ongoing fees
- $0.00
- Discharge fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $2,000 cashback for loans more than of equal to $250,000 with LVR <80%, or $2,500 cashback for loans more than or equal to $500,000 with LVR <80%. Applications from 1 June 2024, loan must be drawn down within 90 days from approval.
Read our Mozo Review to learn more about this Greater Bank Discount Great Rate Home Loan
-
Special Real Deal Home Loan
- Owner Occupier
- Principal & Interest
- LVR <80%
- Interest rate
-
6.19
%
p.a.
Variable
- Comparison rate
- 6.23 % p.a.
- Initial monthly repayment
-
$3,059
No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.
- Interest rate
- 6.19% p.a. variable
- Comparison rate
- 6.23% p.a.
- Upfront fees
- $595
- Ongoing fees
- $0.00
- Discharge fee
- $250.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
-
Basic Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR<70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
- 6.20 % p.a.
- Initial monthly repayment
-
$3,079
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
- Interest rate
-
6.25% p.a.
fixed 3 years
- Comparison rate
- 6.20% p.a.
- Upfront fees
- $350
- Ongoing fees
- $0.00
- Discharge fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
-
Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <70%
- Interest rate
-
6.25
%
p.a.
Fixed 3 years
- Comparison rate
- 6.42 % p.a.
- Initial monthly repayment
-
$3,079
- Interest rate
-
6.25% p.a.
fixed 3 years
- Comparison rate
- 6.42% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge fee
- $400.00
- Extra repayments
- yes - up to $10,000 p.a.
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
-
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.59
%
p.a.
Fixed 3 years
- Comparison rate
- 7.06 % p.a.
- Initial monthly repayment
-
$3,190
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.59% p.a.
fixed 3 years
- Comparison rate
- 7.06% p.a.
- Upfront fees
- $160
- Ongoing fees
- $0.00
- Discharge fee
- $160.00
- Extra repayments
- yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
- no
- Offset account
- Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about this ANZ Fixed Rate
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Your selected home loans
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
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